In recent sessions, we can see that the USD/CAD continued to range between a daily support level chiseled in at 1.3135 and a H4 Quasimodo resistance level at 1.3244. While weekly action still occupies the upper limit of a supply zone at 1.3295-1.3017, daily price appears to be relatively well-bid from the aforementioned support level. To our way of seeing things, this could potentially push prices north to test daily supply at 1.3405-1.3259.
Our suggestions: In that H4 price effectively still remains range bound, much of the following will represent thoughts put forward in Tuesday’s report:
Should H4 action close below the current daily support, this could spark a selloff down to a fresh H4 demand area at 1.3029-1.3051. Supported by prices lurking within weekly supply at the moment, we would look to short beyond the daily support line if price retests this boundary as resistance (waiting for a H4 bearish close following the retest is recommended).
In addition to the above, do keep a tab on the 1.33 handle (not seen on the H4 chart). Not only does this number sit within the above said daily supply, it is also positioned nearby a daily convergence point (a 38.2% Fib resistance level at 1.3315 , a weekly resistance level at 1.3381, a channel resistance taken from the high 1.3241 and an AB=CD completion point around the 1.3332ish range). If price reaches the 1.3310/15 region we’d have no hesitation (apart from if high-impacting news is scheduled for release) in shorting here at market with stops placed above the daily supply zone at 1.3407.
On the data front, nevertheless, do keep a tab on Crude oil inventories data set to be released at 2.30pm GMT, followed by the Fed taking center stage at 6-6.30pm GMT.
Our suggestions: In that H4 price effectively still remains range bound, much of the following will represent thoughts put forward in Tuesday’s report:
Should H4 action close below the current daily support, this could spark a selloff down to a fresh H4 demand area at 1.3029-1.3051. Supported by prices lurking within weekly supply at the moment, we would look to short beyond the daily support line if price retests this boundary as resistance (waiting for a H4 bearish close following the retest is recommended).
In addition to the above, do keep a tab on the 1.33 handle (not seen on the H4 chart). Not only does this number sit within the above said daily supply, it is also positioned nearby a daily convergence point (a 38.2% Fib resistance level at 1.3315 , a weekly resistance level at 1.3381, a channel resistance taken from the high 1.3241 and an AB=CD completion point around the 1.3332ish range). If price reaches the 1.3310/15 region we’d have no hesitation (apart from if high-impacting news is scheduled for release) in shorting here at market with stops placed above the daily supply zone at 1.3407.
On the data front, nevertheless, do keep a tab on Crude oil inventories data set to be released at 2.30pm GMT, followed by the Fed taking center stage at 6-6.30pm GMT.
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.